Personal Injury Small Claims Limit To Increase
The personal injury small claims limit for RTA claims is going to be increased.
After a long period of speculation, the government has announced a number of reforms to personal injury claims, which it plans to introduce in October 2018.
Personal Injury Small Claims Limit for RTA Claims
For RTA claims (road traffic accident – usually whiplash claims) the limit will increase from £1,000 to £5,000. For other types of injury claims, the limit will increase to £2,000.
As you will know from our site, the general small claims limit it £10,000. This does not apply to personal injury claims, for which the small claims limit is £1,000. When the personal injury small claims limit is increased to £5,000 for RTA claims, it means that those bringing a claim will be unable to recover legal costs for a claim that is less than £5,000. That will affect the vast majority of RTA claims.
Fixed Personal Injury Compensation for RTA Claims
As well as increasing the limit for RTA claims, the government proposes to impose fixed compensation for injuries, depending on how long the symptoms suffered last for. For both whiplash claims and minor psychological claims the following will apply:
£225 for injuries lasting up to three months
£450 for injuries lasting up to six months
£765 for injuries lasting up to nine months
£1,190 for injuries lasting up to a year
£1,820 for injuries lasting up to 15 months
£2,660 for injuries lasting up to 18 months
£3,725 for injuries lasting up to two years
There is likely to be some flexibility to Judges to increase or decrease the awards marginally, expected by about 20%.
How people are expected to pursue these claims is unclear. Currently personal injury claims are brought in the claims portal. It is unlikely members of the public will be able to get to grips with the portal as it required lots of solicitors and claims firms to train to learn how to use it. We anticipate another system will be set up to deal with the greater number of people bringing claims on their own without solicitors.
Insurers Will Be Happy To Hear This
The government predicts the changes will create less costs to insurers who in turn should be able to pass on savings of £40 per year to motorists by reduced insurance renewals. Whether they pass on those savings or pocket them themselves, will have to be seen.
